Prior to the vote, Aveo’s directors had received scrip elections for 100,459,474 securities, around 17.3 per cent of total holdings in the company.
A scrip alternative approved at the meeting will give those eligible security holders unwilling to sell access to a foreign unlisted vehicle holding Aveo securities, providing ongoing exposure to the business.
The deal will need final approval from the Federal Court at a hearing scheduled for November 13. If granted, company directors will seek to suspend trading in Aveo’s shares, de-list the company and implement the scheme in the days following.
Aveo was Australia’s largest ASX-listed pure-play retirement village operator and has more than 13,000 residents in about 90 villages across the country.
It has suffered several bumpy years with sales taking a dive after a joint The Age and Sydney Morning Herald investigation in conjunction with ABC’s 4 Corners exposed a litany of questionable business practices, including churning of residents, fee-gouging, safety issues and misleading marketing promises.
Shares in the company traded lower following the investigation, hitting bottom at $1.51 early this year, before rising to trade consistently around Wednesday’s $2.15 close after Brookfield’s bid firmed in August.
Aveo revealed mid this year that Australia’s real estate slump has hit its earnings, warning underlying profits would fall to $50 million cutting its annual distribution to unit holders in half.
Two months ago, billionaire investor Alex Waislitz blasted Aveo’s independent directors saying he was “shocked” at their support of Brookfield’s “highly opportunistic” takeover.